Filing for Bankruptcy Without an Attorney. Whether you should file for bankruptcy without an attorney ("pro se") depends on the type of bankruptcy and the complexity of your case. You are not required to have an attorney to file for bankruptcy.
You should check your court’s website before filing any documents. If you file bankruptcy pro se, you may be offered services by non-attorney petition preparers. By law, preparers can only enter information into forms. They are prohibited from providing legal advice, explaining answers to legal questions, or assisting you in bankruptcy court.
In Chapters 7 and 13, bankruptcy filers must receive credit counseling from an approved provider before filing for bankruptcy and complete a financial management course before the court issues a discharge. Many pro se debtors find these requirements confusing and don't file the proper certificate, resulting in a case dismissal.
It is almost always a good idea to hire an attorney to represent you in bankruptcy. Here are two situations that always call for representation.
More than likely, you would only be dealing with the two most common types of bankruptcies for individuals: Chapter 7 and Chapter 13. (A chapter just refers to the specific section of the U.S. Bankruptcy Code where the law is found.2) But we'll take a look at each type so you're familiar with the options.
After you file for bankruptcy protection, your creditors can't call you, or try to collect payment from you for medical bills, credit card debts, personal loans, unsecured debts, or other types of debt.
The bankruptcy process is complicated, with many steps, deadlines and forms to fill out. People who tackle it by themselves often aren't successful in getting their debt discharged. A bankruptcy attorney generally costs around $1,500 for Chapter 7 and $3,500 for Chapter 13. Pre-bankruptcy credit counseling.
In most Chapter 7 bankruptcy cases, nothing happens to the filer's bank account. As long as the money in your account is protected by an exemption, your bankruptcy filing won't affect it.
Frivolous spending after you file could put your case in jeopardy. Spending money willy-nilly after you file for bankruptcy could appear like fraud and upend your court ruling.
A Chapter 7 bankruptcy will generally discharge your unsecured debts, such as credit card debt, medical bills and unsecured personal loans. The court will discharge these debts at the end of the process, generally about four to six months after you start.
Again, there's no minimum or maximum amount of unsecured debt required to file Chapter 7 bankruptcy. In fact, your amount of debt doesn't affect your eligibility at all. You can file as long as you pass the means test. One thing that does matter is when you incurred your unsecured debt.
Most consumers opt for Chapter 7 bankruptcy, which is faster and cheaper than Chapter 13. The vast majority of filers qualify for Chapter 7 after taking the means test, which analyzes income, expenses and family size to determine eligibility.
Bankruptcy is a legal status that usually lasts for a year and can be a way to clear debts you can't pay. When you're bankrupt, your non-essential assets (property and what you own) and excess income are used to pay off your creditors (people you owe money to). At the end of the bankruptcy, most debts are cancelled.
The exact effects will vary. But according to top scoring model FICO, filing for bankruptcy can send a good credit score of 700 or above plummeting by at least 200 points. If your score is a bit lower—around 680—you can lose between 130 and 150 points.
The common causes of bankruptcy include: Expensive Medical Bills caused by a disability or illness. Poor Financial Management related to student loans, purchasing a car or home, etc. Reduced income or job loss. Unexpected emergencies, such as a car breaking down or catastrophic damage to your property.
Generally, the types of assets that you can keep in a bankruptcy include:personal items and clothing.household furniture, food and equipment in your permanent home.tools necessary to your work.a motor vehicle with a value up to a certain limit, usually an older vehicle qualifies.certain farm property.
It is almost always a good idea to hire an attorney to represent you in bankruptcy. Here are two situations that always call for representation.
If you are not comfortable with any aspect of the bankruptcy process, you should consider hiring an attorney who will prepare the forms, attend the hearings with you, and guide you through the process. Talk to a Bankruptcy Lawyer.
A good bankruptcy petition preparer will have up-to-date bankruptcy computer software that will generate the documents quickly and relatively easily. And most bankruptcy petition preparers charge low fees, especially compared to lawyers.
As a result, some attorneys limit their bankruptcy practice to Chapter 7 because they feel they are not qualified to handle Chapter 13. And, an overwhelming majority of Chapter 13 cases filed without an attorney get dismissed by the court.
homeowners' association dues assessed after filing for bankruptcy. retirement plan loans. money borrowed to pay off nondischargeable tax debt (for instance, the credit card debt incurred after using your account to pay a tax bill), and. debts determined nondischargeable in a previous bankruptcy.
Also, you must file the bankruptcy papers yourself and represent yourself in court. In other words, you are responsible for your case. You act as your attorney and use the bankruptcy petition preparer as a typing service that transposes the information you give them onto the official forms.
Priority debts get paid first if money is available to pay creditors. More importantly, they're nondischargeable—they don't go away in bankruptcy.
You might ask yourself, “Who cares if I choose the wrong chapter or miss a form?” The answer is simple: the federal courts, your bankruptcy trustee, and your creditors. When you file for bankruptcy yourself, the court doesn’t give you any special help or personalized advice. Instead, you are solely responsible for learning federal bankruptcy law and the court’s specific procedures and rules. Do you have time to read and interpret the U.S. Bankruptcy Code, the Federal Rules of Bankruptcy Procedure, and your federal bankruptcy court’s local rules?
When you file bankruptcy yourself, you are solely responsible for managing your claim. Many unrepresented bankruptcy claimants struggle to keep up with the forms, hearings, and responsibilities of handling their claims. You might have to:
You will at least need an understanding of the legal issues before filing the bankruptcy petition. How hard a case will be will also depend on other factors including :
Download the bankruptcy forms package to save the time and stress involved in tracking down the necessary materials. The packages are inexpensive and provide you with all the forms you need to file for Chapter 7 bankruptcy in your state.
In general, you need to at least pay a filing fee and the credit counseling and financial management course fees to finalize your bankruptcy petition. But if you have no money, you can ask for a fee waiver (in Chapter 7 cases) or ask the bankruptcy judge to roll the payment in your repayment plan (in Chapter 13 cases).
Finally, you must complete a post-filing Personal Financial Management Instruction Course within 45 days of your meeting of creditors. Take a look at the U.S. Trustee Program's site to find an approved course near you. After you've completed the course, the last step is to wait to hear from the bankruptcy court whether your debts have been discharged.
You'll need all three reports because creditors don't typically report to every bureau. If you fail to report a debt, it won't be discharged in bankruptcy. Next, you'll have to complete a credit counseling and financial literacy course.
You'll have to attend your “ Meeting of Creditors " on the scheduled date. Although your creditors won't actually be present , the trustee will be and will ask you a number of standard questions about your case. Be sure to answer truthfully and accurately.
Even though your case is relatively uncomplicated, a bankruptcy case requires you to fill out extensive paperwork and have a good knowledge of the Bankruptcy Code. Thus, it may be in your best interest to at least have an initial consultation with an attorney to make sure you are on the right course.